The memo that went out Thursday, which TechCrunch obtained, says the "timing" of the company's pivot away from tractor manufacturing puts it at risk.

Burks Tractor, a dealership located in Idaho, has sued Monarch for breach of contract and allegedly violating its warranty because the California-based startup's tractors were "unable to operate autonomously." The dealership also says the 10 tractors it purchased "continue to experience significant problems," and calls them "defective."